UK midcaps climb, FTSE 100 flat a day after budget

Nov 27 (Reuters) - The UK's midcap index climbed on Thursday, hitting its highest in two weeks, a day after Finance Minister Rachel Reeves announced a big tax-raising budget.

The blue-chip FTSE 100 .FTSE ended flat, while the domestically-focused FTSE 250 .FTMC rose 0.9%, logging its fourth consecutive session of gains.

Demand for new homes could gradually recover next year, giving British homebuilders a much-needed boost, analysts and some investors said after Wednesday's budget cleared uncertainty that held buyers back.

Shares of homebuilders .FTNMX402020 were up 2.1%, with Berkeley BKGH.L, Barratt Redrow BTRW.L and Persimmon PSN.L gaining between 1.3% and 3.1% after falling in the previous session.

Beverages .FTNMX451010 stocks added 1%, with Diageo DGE.L rising 1.5%. Utilities .FTUB6510 gained 0.9%.

The real estate sector .FTUB3510 advanced 0.9%. Swiss bank UBS said Wednesday's budget was good news for real estate stocks.

British Land BLND.L gained 2.7% while Segro SGRO.L added 1.6%. Heavyweight banks .FTNMX301010 gained 1.1% with Barclays BARC.L and NatWest Group NWG.L rising 1.7% and 2.3% respectively.

On the flip side, the pharma sector .FTNMX201030 lost 0.8% with AstraZeneca AZN.L falling nearly 1%.

Industrial miners .FTNMX551020 fell with Rio Tinto RIO.L down 1.9%. Energy stocks .FTNMX601010 declined 0.7%. BP BP.L fell 1.3%.

Reeves delivered a highly-anticipated budget on Wednesday that raised taxes and doubled her margin to meet Britain’s fiscal targets, known as headroom, even as welfare spending rises.

Big investors broadly welcomed the tax-raising budget but they warned it may not be enough if growth falters because tax hikes are due to kick in later.

Among other moves, shares of British gambling firms fell. Evoke PLC EVOK.L lost 4.1% and Rank Group RNK.L declined 9.3%, reversing Wednesday’s rebound, after both companies warned that the plan to hike taxes on online gaming would hit profits.

However, gambling tech firm Playtech PTEC.L rose 8.6% and the company said it remains confident of meeting market expectations for 2026.

Unite Group UTG.L fell 3.5% after the student accommodation developer warned of lower earnings in 2026.

Online fashion retailer Debenhams DEBS.L surged 57.8% on an upbeat profit forecast.

Severn Trent SVT.L and 3i Group III.L fell as they traded ex-dividend.

Also in focus were developments to end the war in Ukraine.

Markets in the U.S. are closed for the Thanksgiving holiday.